Eastern Europe: Factors Underlying the Weakening Performance of Tax Revenues
September 1, 1994
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Summary
The paper analyzes the decline of tax revenue/GDP ratios in transition economies of central and eastern Europe. The paper separates the effect on revenues of discretionary policy actions and finds that endogenous factors, notably the collapse of underlying profits and declining effective tax rates, were the main source of falling tax revenue/GDP ratios. Underlying factors are analyzed to provide a basis to discuss the outlook for tax revenues in coming years.
Subject: Consumption taxes, Effective tax rate, Inflation, Prices, Revenue administration, Social security contributions, Tax policy, Taxes
Keywords: Central and Eastern Europe, confiscation of enterprise profits, Consumption taxes, Effective tax rate, enterprise tax liabilities, GDP, GDP ratio, GDP to revenue, Inflation, inflation tax, net effect, net profit, net revenue, revenue performance, Social security contributions, subsidy mechanism, tax net, tax rate, taxation, trade tax, WP
Pages:
29
Volume:
1994
DOI:
Issue:
104
Series:
Working Paper No. 1994/104
Stock No:
WPIEA1041994
ISBN:
9781451947908
ISSN:
1018-5941
Notes
Discusses Albania, Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovak Republic, and the former Czechoslovakia.
